Minnesota mayors demand answers on alleged $9 billion fraud crisis

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Nearly 100 Minnesota mayors sound alarm over state fraud scandal

South St. Paul Mayor Jimmy Francis and Crosslake Mayor Jackson Purfeerst discuss the alleged fraud scandal under Minnesota Gov. Tim Walz and who should be held accountable on ‘Fox & Friends.’

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Two of the nearly 100 Minnesota mayors demanding answers about the state’s unfolding fraud crisis described a climate of relentless uncertainty that has left some constituents "scared" about what lies ahead.

"My community is reaching out to me because they're not getting answers from DHS, from other legislators, and they're scared. There's so much unknown… and, as a mayor, we are the front line. We try to help them," South St. Paul Mayor Jimmy Francis said on "Fox & Friends" Wednesday.

So far, that help has involved putting concerned constituents in contact with county officials to find the answers they seek.

"Those that are receiving those benefits are really scared and frightened of what's next because they don't know," he added.

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Crosslake, Minnesota, Mayor Jackson Purfeerst, left, and South St. Paul, Minnesota, Mayor Jimmy Francis, right. (Fox & Friends)

The scandal dates back to at least 2020 and involves fraudulent billing for a wide range of government services. It largely involves, but is not limited to, the state's Somali community.

Crosslake, Minnesota, Mayor Jackson Purfeerst spearheaded a letter co-signed by nearly 100 mayors to Gov. Tim Walz and other state officials on Monday, expressing deep concerns over the development.

"Fraud, unchecked spending and inconsistent fiscal management in St. Paul have trickled down to our cities. … Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors and businesses out of Minnesota," the letter reads in part.

Purfeerst said the number of mayors signing on to the letter is growing and stressed the extent of the crisis afflicting Minnesotans.

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Minnesota Gov. Tim Walz sits for an interview with Star Tribune journalists in his office at the State Capitol in St. Paul on Dec. 12, 2024. (Alex Kormann/The Minnesota Star Tribune/Tribune News Service via Getty Images)

"If we do the quick math, $9 billion in fraud divided by 5.79 million Minnesotans comes out to roughly be 1,500 bucks a person that each hardworking Minnesotan has had stolen from them," he said.

Walz, who is runningfor a third term, took accountability in recent remarks to reporters.

"This is on my watch. I am accountable for this. And more importantly, I am the one that will fix it," he said.

But Walz questioned whether federal prosecutors' accusations that the fraud could have totaled in the billions were politically motivated.

"You should be equally outraged about $1 or whatever that number is, but they're using that number without the proof behind it," Walz said. "But to extrapolate what that number is for sensationalism, or to make statements about it, it doesn't really help us."

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